ESP : Empiric raises £65m and invests in Huddersfield
Empiric Student Property has just raised £66m from investors through a placing and offer for subscription of shares and has already spent some of this on a new student accommodation block in Huddersfield.
65m shares were placed with institutional investors or sold through an offer for subscription at 101p. Empiric say they’ll deploy this money over the next few months.
They are buying the freehold of a forward funded development in Huddersfield, known as Snow Island. It is currently being developed into a prime, purpose-built student accommodation asset by developer AQH Mickelsfield. The site is located close to the University of Huddersfield and the 3M Buckley Innovation Centre and Business School. Empiric Student Property has entered into agreements to forward fund the development, comprising 98 beds, with practical completion expected in August 2015 in time for the 2015/16 academic year. The full investment required for the development is £7.5m, which will be invested in stages against development milestones. They’ll receive an income return from the developer on funds invested during the development period.